Texas Exchange Health Insurance

Texas Exchange Health Insurance

One firm, for example, misunderstanding the complex value network in which Texas Exchange Health Insurance was embedded, and wanting to reduce its supplier costs, sent a formal, standardized memo to all suppliers, demanding a 7 percent reduction. It just so happened that one Texas Exchange Health Insurance supplier (probably not the only one) was also a customer. It also happened that, as a customer, this firm bought three times what it supplied. The executives at this firm thought that reducing supply costs by 7 percent was a brilliant idea. They copied the letter and sent Texas Exchange Health Insurance to the original firm. HR in a value network would help ensure that policies with complex value networks are consistent and productive.

Managers and HR professionals must learn to create organizations that work along the value chain and across the value network.

Challenge Three: Profitability through Cost and Growth

Profitability is a given. Firms that are not competitive as measured by profit, in the absence of a sustained monopolistic position, will fail. Profitability will continue to be a business issue in the future, but the accepted path to profitability will likely change Texas Exchange Health Insurance. Increasingly, profitability must come from some combination of increased revenue and decreased costs.

During the last decade, most Western firms have been clearing debris. Downsizing, delayering, consolidation, productivity gains, reengineering, less, becoming more efficient, improving processes, and cutting costs as means to becoming more profitable. One company engaged in renewal compiled a list of the Texas Exchange Health Insurance initiatives they had tried since the mid-1980s; it included the following:

Workout

Most of these initiatives focus on the cost element of the profitability equation; they are designed to reduce the costs of people, processes, or other business expenses. While such a focus is not bad, it is only part of the profitability equation.

Increasingly, executives are discovering (or rediscovering) the second half of the profit equation: revenue growth. The point is not to replace cost with growth but to find ways to experience profitable growth.